Private capital stocks are weak across the board, says Strategas' Verrone

Market Sentiment & Economic Outlook - The market shows a defensive shift with healthcare and utilities outperforming [2] - The 2-year yield at roughly 355-360 suggests the market anticipates the Fed to cut rates [3] - The market is uncertain whether recent weakness is due to a flush of weak hands in crowded AI beta positioning or a fundamental rethink of the economy [5] Bond Market Analysis - 30-year yields have modestly increased since the last Fed meeting [4] - The analyst anticipates the 10-year yield to be capped around 430-435, viewing it as a buying opportunity for bonds [4] - The bond market may force the Fed to cut rates sooner and more aggressively than desired [5] Tech Sector Concerns - Distributive top formations in legacy software companies like Salesforce, Workday, and Service Now are a concern if Nvidia falters [8] - Salesforce's underperformance year-to-date highlights potential weakness in certain tech segments [9] Financial Sector Observations - Banks have been the best performers in the financial sector, while private capital and alternative asset managers have been weak [10] - Weakness in private capital stocks sends a message that the Fed should heed [11]